A credit derivative is a financial contract that aims at reducing credit risk—that is, the risk of default posed by contracts established with a business counterparty. These kinds of derivatives have become increasingly popular in the last decade, because they allow the hedging of complex financial positions even in industries that are not covered by mainstream markets.
As a financial software engineer, you are interested in modeling and analyzing such credit derivative contracts using programming code. Employing some of the methods developed in the previous chapters, ...
